SEC Rules Around Newsletters?

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Jul 17, 2009 5:45 pm

Hey Guys,

Another rookie question. Don't be surprised.

All these financial newsletters I see (some charging over $1,500) seem quite lax. Are there any SEC rules/regulations about financial newsletters? I never saw any notices on any of the sites...

Was just curious about the rational behind the whole thing. Are they just able to make free reign trading suggestions, without any worries from the SEC? As long as they put some notice on about not being responsible for trades, etc.

Sorry if the question seems stupid.

Jul 18, 2009 5:49 pm

Anyone....

I've refreshed this post over 14 times looking for a response.

Save me.

Jul 18, 2009 6:27 pm

From what I remember, if you are only a publisher of financial information, and not providing an actual trading or advising service for a fee, you can pretty much write anything you want.

I believe the designation of publisher is exempt from SEC or FINRA registration.

Then again, I could be wrong!

Jul 18, 2009 7:46 pm

What about those pay-for newsletters that give specific advice about which stocks to buy/sell?

Jul 18, 2009 9:09 pm
InvestorTester:

What about those pay-for newsletters that give specific advice about which stocks to buy/sell?





They do have to file as an Investment Advisor. There are exceptions. But especially for people who are RIA already, you have to note it on your ADV.



Jul 18, 2009 9:43 pm

This caught my eye...

On:
http://www.mysmartrend.com/about.asp

It says (in the footer):
Comtex News Network, Inc. is not a registered investment advisor and does not provide investment advice.

Does that clear them of all liability?


Jul 19, 2009 3:10 pm
InvestorTester:

What about those pay-for newsletters that give specific advice about which stocks to buy/sell?



As long as they're not giving specific investment advice for a fee to individual clients, they can write whatever they want without the oversight.